One of the critical factors to your success when trading with binary options is the platform that you use for your trading. The software provided by your broker is where you will conduct all aspects of your trading including pricing and executing your deals as well as managing the functions on your account. For this reason it is important that you take a close look at what is on offer before taking the plunge and opening up an account.
Binary trading platforms are based on complicated software which you can gain access via your account details. They are normally web-based, allowing the trader to access their account from anywhere where they can connect to the Internet. The software is provided freely for clients with the exact specifications dependent upon the brokers offering.
Before you select a binary options platform to trade with you might want to consider some of the key points below. These will help you to find the best and most suitable dealing platform for your binary options trading.
The most important things that traders will be concerned about when trading is the amount of profit that they stand to earn from a profitable contract. Binary options brokers make their profits by balancing the number of winning outcomes versus the number of losing outcomes on each contract. To protect themselves the return on each contract is weighted in the favour of the broker. For a losing position you are likely to take a full 100% loss but only receive a 70% return on your investment when you win.
For this reason it is important that you factor in any rebates that are offered on contracts into your profit calculations. By doing this you will be able to work out what rate of return you need to make and the percentage of winning trades that you will need to make to ensure your strategy is profitable.
Speed And Reliability
The ability to quickly action your orders is a requirement that you will need to look out for when selecting a dealing system. With short term contracts, such as are used in binary options trading, the speed of execution is even more critical. It is vital that you orders are placed at the levels you anticipate. If it is not then you may face the situation where you contract ends 'out of the money' simply due to a delay in order execution.
Furthermore you want to make sure that the platform is reliable. It should not suffer from too many 'down times' and be readily available when you want to trade.
Ease Of Use
It perhaps goes without saying that you will need to be able to navigate your system easily. Not only will an efficient and well laid out binary options trading platform be easy to use, it will also ensure that you don't make mistakes when trading. This can prove costly, especially when you are first starting out.
The interface should be intuitive and allow you to readily identify potential positions that you want to trade, while also ensuring that sufficient checks and balances are in place to confirm your entries. Furthermore when it comes to depositing and withdrawing funds on the platform you will need to know that these requests are serviced quickly with the minimum of fuss.
Before you make a final choice on the platform that you want to use it is worthwhile coming up with a list of binary options brokers and making a comparison between the platforms that each uses. This along with other factors such as their level of service and reputation within the industry can then be used to help you decided upon which is most likely to match your trading requirements.